Here are some reasons to learn more about PPL:

Commitment:

PPL Corporation strives to balance our commitment to our customers, our communities and our environment. But we also understand that each business decision must ultimately build a foundation for shareowner value.

Yes, the marketplace has changed dramatically. The 1990s saw an end to the traditional electric utility. In this exciting new era of competition, PPL has positioned itself to take advantage of new opportunities in both the regulated and deregulated industry. Our corporate strategies emphasize growth in shareowner value through expansion into new markets and the offering of new energy-related products and service.

Performance:

• PPL Corporation reported declines in both second-quarter and first-half earnings for 2008, compared with the same periods of 2007.

• PPL’s reported earnings in the most recent quarter were $0.50 per share, compared with $0.88 per share a year ago. For the first six months of 2008, PPL reported earnings of $1.19 per share, compared with $1.41 per share a year ago. 

• Contributing to the declines in earnings versus 2007 were: the divestitures of PPL’s electricity delivery businesses in Latin America, including the loss of operating earnings; a 2007 U.S. tax benefit that did not recur in 2008; rising fuel costs; and the loss of synfuel-related earnings. Partially offsetting these negative factors were improved margins from energy marketing and trading activities.

• Excluding special items, PPL’s second-quarter earnings from ongoing operations also declined, to $0.50 per share, compared with $0.63 per share a year ago. For the first six months of 2008, earnings from ongoing operations were $1.11 per share, compared with $1.28 per share a year ago.

• PPL’s reported earnings in the second quarter of 2008 reflected a special item credit of $0.01 per share related to mark-to-market impacts of energy-related, non-trading economic hedges, and a special item charge of $0.01 for impairments of securities in PPL’s nuclear decommissioning trust funds. The second quarter of 2007 reflected net special item credits of $0.25 per share, primarily from the sale of PPL’s electricity delivery business in El Salvador.

Reported earnings are calculated in accordance with generally accepted accounting principles (GAAP). Earnings from ongoing operations is a non-GAAP financial measure that excludes special items. Special items include charges or credits that are unusual or nonrecurring. Special items also include the mark-to-market impact of energy-related, non-trading economic hedges and impairments of securities in PPL’s nuclear decommissioning trust funds.

“Earnings from ongoing operations” excludes the impact of special items. Special items include charges, credits or gains that are unusual or nonrecurring. Special items also include the mark-to-market impact of energy-related, non-trading economic hedges and impairments of securities in PPL’s nuclear decommissioning trust funds. The mark-to-market impact of these hedges is economically neutral to the company because the mark-to-market gains or losses on the energy hedges will reverse as the hedging contracts settle in the future. Earnings from ongoing operations should not be considered as an alternative to reported earnings, or net income, which is an indicator of operating performance determined in accordance with generally accepted accounting principles (GAAP). PPL believes that earnings from ongoing operations, although a non-GAAP measure, is also useful and meaningful to investors because it provides them with PPL’s underlying earnings performance as another criterion in making their investment decisions. PPL’s management also uses earnings from ongoing operations in measuring certain corporate performance goals. Other companies may use different measures to present financial performance.

For more information, contact PPL Investor Services at 1-800-345-3085.